LAND Rover is claiming £200 million from the financial collapse of Longbridge, it was revealed today.

LAND Rover is claiming #200 million from the financial collapse of Longbridge, it was revealed today.

The Solihull 4x4 manufacturer, effectively now for sale following last week's announcement by Ford, has written to liquidators PricewaterhouseCoopers in pursuit of an alleged #200 million debt.

The claim, the largest from the fallout of former Longbridge engine-maker Powertrain, emerged from the detail of the liquidators' report into the Birmingham engine plant.

The report from Powertrain Ltd Joint Liquidator Steve Pearson said: "A claim of #200 million has recently been received from Land Rover in respect of two clauses contained in their engine and gearbox supply agreements with the company.

"This was not reflected in the Directors' Statement of Affairs and now represents the single largest claim in the estate.

"Should the claim prove valid, it will reduce unsecured creditor recoveries by approximately one half. I am not yet in a position to adjudicate the claim and further information and advice will be required.

"However, I will discuss my findings and next steps with your Liquidation Committee in due course."

It is understood that unsecured creditors from the collapse of Powertrain could eventually be in line for payouts of at least 7p in the pound and possibly up to 15p.

If the Land Rover claim is successful, the Solihull firm could receive compensation in the region of #20 million.

Cash balances of #37.1 million have so far been realised from the administration of Powertrain, which employed nearly 1,150 people at Longbridge when it collapsed in April 2005 in the wake of the MG Rover demise.

The PricewaterhouseCoopers report adds: "To date, 471 claims have been received from trade and other creditors, of which 433 with a total value of #27.8 million have been admitted for dividend purposes.

"A further 301 creditors with a value of #4.3 million have yet to submit a claim, despite having received numerous requests."

Just three creditors turned up at yesterday's creditors' meeting at the Hilton Metropole Hotel to hear the liquidators outline progress of the #1.4 billion crash of MG Rover.